TRADEWEB MARKETS INC-CLASS A (TW)
US8926721064 - Common Stock
We assign a fundamental rating of 6 out of 10 to TW. TW was compared to 220 industry peers in the Capital Markets industry. TW is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. TW is valued quite expensive, but it does show an excellent growth. These ratings would make TW suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year TW was profitable.
In the past year TW had a positive cash flow from operations.
Each year in the past 5 years TW has been profitable.
Each year in the past 5 years TW had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.11%, TW is doing good in the industry, outperforming 76.50% of the companies in the same industry.
TW has a Return On Equity (7.86%) which is in line with its industry peers.
TW's Return On Invested Capital of 7.47% is fine compared to the rest of the industry. TW outperforms 77.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TW is in line with the industry average of 7.00%.
The last Return On Invested Capital (7.47%) for TW is above the 3 year average (5.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 7.86% | ||
| ROIC | 7.47% |
ROA(3y)4.63%
ROA(5y)3.69%
ROE(3y)5.97%
ROE(5y)4.85%
ROIC(3y)5.53%
ROIC(5y)4.7%
1.3 Margins
Looking at the Profit Margin, with a value of 27.46%, TW is in the better half of the industry, outperforming 69.59% of the companies in the same industry.
In the last couple of years the Profit Margin of TW has grown nicely.
With a decent Operating Margin value of 38.83%, TW is doing good in the industry, outperforming 65.90% of the companies in the same industry.
TW's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.83% | ||
| PM (TTM) | 27.46% | ||
| GM | N/A |
OM growth 3Y8.57%
OM growth 5Y7.58%
PM growth 3Y13.49%
PM growth 5Y2.34%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
TW has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TW has been increased compared to 5 years ago.
The debt/assets ratio for TW is higher compared to a year ago.
2.2 Solvency
TW has an Altman-Z score of 11.25. This indicates that TW is financially healthy and has little risk of bankruptcy at the moment.
TW has a Altman-Z score of 11.25. This is amongst the best in the industry. TW outperforms 96.31% of its industry peers.
TW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.25 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 3.00 indicates that TW has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.00, TW belongs to the top of the industry, outperforming 80.18% of the companies in the same industry.
A Quick Ratio of 3.00 indicates that TW has no problem at all paying its short term obligations.
TW has a Quick ratio of 3.00. This is amongst the best in the industry. TW outperforms 80.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3 | ||
| Quick Ratio | 3 |
3. Growth
3.1 Past
TW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.33%, which is quite impressive.
The Earnings Per Share has been growing by 18.93% on average over the past years. This is quite good.
The Revenue has grown by 29.45% in the past year. This is a very strong growth!
TW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.27% yearly.
EPS 1Y (TTM)33.33%
EPS 3Y19.76%
EPS 5Y18.93%
EPS Q2Q%36.36%
Revenue 1Y (TTM)29.45%
Revenue growth 3Y14.45%
Revenue growth 5Y15.27%
Sales Q2Q%36.72%
3.2 Future
TW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.71% yearly.
TW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.06% yearly.
EPS Next Y32.93%
EPS Next 2Y23.37%
EPS Next 3Y19.47%
EPS Next 5Y18.71%
Revenue Next Year29.75%
Revenue Next 2Y22.68%
Revenue Next 3Y18.57%
Revenue Next 5Y13.06%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 47.40, which means the current valuation is very expensive for TW.
Based on the Price/Earnings ratio, TW is valued more expensive than 80.65% of the companies in the same industry.
When comparing the Price/Earnings ratio of TW to the average of the S&P500 Index (27.73), we can say TW is valued expensively.
TW is valuated quite expensively with a Price/Forward Earnings ratio of 38.76.
Based on the Price/Forward Earnings ratio, TW is valued a bit more expensive than the industry average as 76.96% of the companies are valued more cheaply.
TW is valuated expensively when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.4 | ||
| Fwd PE | 38.76 |
4.2 Price Multiples
TW's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as TW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.48 | ||
| EV/EBITDA | 32.26 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TW has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TW's earnings are expected to grow with 19.47% in the coming years.
PEG (NY)1.44
PEG (5Y)2.5
EPS Next 2Y23.37%
EPS Next 3Y19.47%
5. Dividend
5.1 Amount
With a yearly dividend of 0.31%, TW is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 9.45, TW is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, TW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
5.2 History
On average, the dividend of TW grows each year by 10.06%, which is quite nice.
TW has been paying a dividend for over 5 years, so it has already some track record.
As TW did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)10.06%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
TW pays out 18.52% of its income as dividend. This is a sustainable payout ratio.
TW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.52%
EPS Next 2Y23.37%
EPS Next 3Y19.47%
TRADEWEB MARKETS INC-CLASS A
NASDAQ:TW (12/20/2024, 8:00:01 PM)
After market: 132.73 0 (0%)132.73
+2.4 (+1.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners102.68%
Inst Owner Change-0.15%
Ins Owners0.11%
Ins Owner Change-0.15%
Market Cap28.29B
Analysts80.87
Price Target147.97 (11.48%)
Short Float %1.37%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
Dividend Growth(5Y)10.06%
DP18.52%
Div Incr Years2
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.83%
Min EPS beat(2)-4.05%
Max EPS beat(2)-1.6%
EPS beat(4)0
Avg EPS beat(4)-2.64%
Min EPS beat(4)-4.05%
Max EPS beat(4)-1.6%
EPS beat(8)2
Avg EPS beat(8)-1.52%
EPS beat(12)3
Avg EPS beat(12)-1.61%
EPS beat(16)3
Avg EPS beat(16)-1.76%
Revenue beat(2)0
Avg Revenue beat(2)-3.41%
Min Revenue beat(2)-3.78%
Max Revenue beat(2)-3.04%
Revenue beat(4)0
Avg Revenue beat(4)-3.41%
Min Revenue beat(4)-3.78%
Max Revenue beat(4)-3.04%
Revenue beat(8)0
Avg Revenue beat(8)-3.07%
Revenue beat(12)0
Avg Revenue beat(12)-3.08%
Revenue beat(16)0
Avg Revenue beat(16)-2.75%
PT rev (1m)2.22%
PT rev (3m)18.59%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)7.62%
EPS NY rev (1m)0.07%
EPS NY rev (3m)4.26%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)13.66%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)4.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.4 | ||
| Fwd PE | 38.76 | ||
| P/S | 17.33 | ||
| P/FCF | 35.48 | ||
| P/OCF | 32.88 | ||
| P/B | 4.96 | ||
| P/tB | 30.42 | ||
| EV/EBITDA | 32.26 |
EPS(TTM)2.8
EY2.11%
EPS(NY)3.42
Fwd EY2.58%
FCF(TTM)3.74
FCFY2.82%
OCF(TTM)4.04
OCFY3.04%
SpS7.66
BVpS26.74
TBVpS4.36
PEG (NY)1.44
PEG (5Y)2.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 7.86% | ||
| ROCE | 9.4% | ||
| ROIC | 7.47% | ||
| ROICexc | 9.15% | ||
| ROICexgc | 77.97% | ||
| OM | 38.83% | ||
| PM (TTM) | 27.46% | ||
| GM | N/A | ||
| FCFM | 48.84% |
ROA(3y)4.63%
ROA(5y)3.69%
ROE(3y)5.97%
ROE(5y)4.85%
ROIC(3y)5.53%
ROIC(5y)4.7%
ROICexc(3y)7.13%
ROICexc(5y)5.86%
ROICexgc(3y)52.15%
ROICexgc(5y)52.08%
ROCE(3y)6.98%
ROCE(5y)5.93%
ROICexcg growth 3Y14.13%
ROICexcg growth 5YN/A
ROICexc growth 3Y23.8%
ROICexc growth 5Y21.26%
OM growth 3Y8.57%
OM growth 5Y7.58%
PM growth 3Y13.49%
PM growth 5Y2.34%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 30.83% | ||
| Cap/Sales | 3.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.61% | ||
| Profit Quality | 177.9% | ||
| Current Ratio | 3 | ||
| Quick Ratio | 3 | ||
| Altman-Z | 11.25 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)32.29%
Cap/Depr(5y)31.29%
Cap/Sales(3y)4.81%
Cap/Sales(5y)4.99%
Profit Quality(3y)201.77%
Profit Quality(5y)232.86%
High Growth Momentum
Growth
EPS 1Y (TTM)33.33%
EPS 3Y19.76%
EPS 5Y18.93%
EPS Q2Q%36.36%
EPS Next Y32.93%
EPS Next 2Y23.37%
EPS Next 3Y19.47%
EPS Next 5Y18.71%
Revenue 1Y (TTM)29.45%
Revenue growth 3Y14.45%
Revenue growth 5Y15.27%
Sales Q2Q%36.72%
Revenue Next Year29.75%
Revenue Next 2Y22.68%
Revenue Next 3Y18.57%
Revenue Next 5Y13.06%
EBIT growth 1Y39.28%
EBIT growth 3Y24.25%
EBIT growth 5Y24.01%
EBIT Next Year37.7%
EBIT Next 3Y22.2%
EBIT Next 5Y15.67%
FCF growth 1Y43.63%
FCF growth 3Y19.53%
FCF growth 5Y23.8%
OCF growth 1Y39.6%
OCF growth 3Y18.96%
OCF growth 5Y21.88%